1. Employee Management
  2. Employees
  3. Compliance
  4. Affordable Care Act (ACA) Reporting
  5. ACA Pre-Filing
  6. Identifying Part-Time Employees

Identifying Part-Time Employees

The next step for ACA pre-filing is to identify part-time employees. These are employees who do not meet the minimum number of hours to be considered full-time for a specific period.

To identify part-time employees:

  1. Go to Payroll and HR > Payroll > Affordable Care Act (Payroll Manager).

  2. If applicable, select the subsidiary from the View list.

  3. Select the payroll items considered eligible hours of service. These are used to determine an employee’s full-time status under Section 4980H. ACA-eligible payroll items include:

    • Earning: Wage

    • Earning: Salary

    • Earning: Vacation

    • Earning: Sick

    The payroll items are automatically selected, but you can change the list if needed.

    Note:

    If the ALE member has multiple subsidiaries, at least one must have payroll items set up. If a subsidiary does not have payroll items defined, a warning message appears showing which ones are missing payroll items. If there are multiple subsidiaries, you can choose payroll items for those that have them defined.

    For more information about payroll items, see Payroll Items Setup. For more information about eligible hours of service, go to https://www.irs.gov/instructions/i109495c.

  4. Click Done to save the changes and return to the ACA landing page.

  5. To identify employees who do not meet the minimum number of hours to be considered full-time, click Set Part-Time.

  6. To filter the list of employees, enter a Start Date and End Date for the employees’ paychecks. These two dates must be at least three months apart.

  7. By default, the Show Employees Who Worked Less Than 130 hours per month and 30 hours per week boxes are checked. To see employees outside of these parameters, clear the boxes.

  8. By default, the Show inactive and terminated employees in the current filing year box is not checked. To include these employees, check this box.

  9. Select one or more employees, then click Set to Part-Time.

  10. Enter the date range when the employee will be considered part-time.

    For example, if an employee averaged less than 30 hours per week from January 1 to December 31, 2021, you may set them to part-time from January 1 to December 31, 2022 for ACA purposes. For more information, see https://www.irs.gov/instructions/i109495c.

  11. Click OK.

  12. Check that the date range for the employees set to part-time status is correct in the 2020 Part Time Status column.

  13. Click OK.

The contact set as the default recipient for ACA notifications gets an email after the changes are applied. For more information, see Setting up a Default Recipient for ACA Notifications.

To make changes, click Edit Hours on the ACA landing page.

Related Topics

General Notices